The Principles of our Market economy.The role of business in the
American Economy.
3. What is the target reading skill?
Recognizing multiple causes,
understand effects, identify
causes and effects.
4. Read "Civics in the Real World" on page 375. Which strawberries would you buy and why?
The organic becuase there were
no insects on them for only $1.50
or more.
5. Look at the diagram on page 378. This is the Circular Flow Model. What can individuals supply to business? What can business give to individuals?
Click Circular Flow Model to be brought to an interactive link.
Money, products.
6. Why do you think our economists use a Circle to explain our market economy, instead of a different shape?
Becuase, like the flow, a circle never ends.
7. Look at the graph on page 380. How does a decrease in price affect the supply of strawberries? How does a decrease in price affect the demand for strawberries?
A decrease in price might not
give the supplier enought money to grow strawberries, more people
might want strawberries.
8. Look at the diagram on page 383. What is given for labor? land? capital?
Wages and salaries, Rent, Interest.
9. Look at the graph on page 384. What percentage of firms are corporations? What percentage of sales comes from sole proprietorships and partnerships together?
20.4%, 79.6%
10. Skim through section 3. Why have labor unions risen in the past?
Because of emplyees.
American Economy.
understand effects, identify
causes and effects.
no insects on them for only $1.50
or more.
Click Circular Flow Model to be brought to an interactive link.
give the supplier enought money to grow strawberries, more people
might want strawberries.
Because of emplyees.